For a Star Currency in 2013, Look North

Yes, today is all about the election - but there will still be investment opportunities after November 6. Camilla Sutton, chief currency strategist at Scotiabank, has published her 2013 forecast for the G10 currencies, and she says the Canadian dollar is looking awfully good.

Sutton cites four factors to support her view: "CAD outperforms USD on central bank, sovereign, sentiment and stable government," she says. She believes the Bank of Canada is likely to be more hawkish than the Federal Reserve, arguing that "Fed policy on a relative global basis is only USD positive against EUR and JPY." She also points out that the Canadian economy will benefit from its ties to a recovering America and a strong resource base. The country's triple-A credit rating will also help, she says.

Relatively high household debt is a concern for the Canadian economy, Sutton says, but she still sees the Canadian dollar smartly outperforming the greenback. She expects the loonie to outperform the Australian dollar, the euro, the British pound and the yen against the dollar over the next year.